Modiv Industrial (NYSE:MDV) versus Armada Hoffler Properties (NYSE:AHH) Critical Analysis

Armada Hoffler Properties (NYSE:AHHGet Free Report) and Modiv Industrial (NYSE:MDVGet Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Institutional & Insider Ownership

66.4% of Armada Hoffler Properties shares are held by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are held by institutional investors. 10.2% of Armada Hoffler Properties shares are held by insiders. Comparatively, 2.8% of Modiv Industrial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Armada Hoffler Properties and Modiv Industrial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Armada Hoffler Properties 2 1 1 1 2.20
Modiv Industrial 0 1 0 1 3.00

Armada Hoffler Properties currently has a consensus price target of $8.13, indicating a potential upside of 18.70%. Modiv Industrial has a consensus price target of $18.00, indicating a potential upside of 25.30%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, analysts plainly believe Modiv Industrial is more favorable than Armada Hoffler Properties.

Risk & Volatility

Armada Hoffler Properties has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500.

Profitability

This table compares Armada Hoffler Properties and Modiv Industrial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Armada Hoffler Properties 6.77% 4.43% 1.22%
Modiv Industrial 3.00% 0.67% 0.28%

Dividends

Armada Hoffler Properties pays an annual dividend of $0.56 per share and has a dividend yield of 8.2%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 8.1%. Armada Hoffler Properties pays out 294.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Modiv Industrial pays out -450.0% of its earnings in the form of a dividend. Modiv Industrial has increased its dividend for 3 consecutive years.

Earnings and Valuation

This table compares Armada Hoffler Properties and Modiv Industrial”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Armada Hoffler Properties $708.47 million 1.00 $35.65 million $0.19 36.03
Modiv Industrial $46.76 million 3.16 $6.02 million ($0.26) -55.25

Armada Hoffler Properties has higher revenue and earnings than Modiv Industrial. Modiv Industrial is trading at a lower price-to-earnings ratio than Armada Hoffler Properties, indicating that it is currently the more affordable of the two stocks.

Summary

Armada Hoffler Properties beats Modiv Industrial on 12 of the 17 factors compared between the two stocks.

About Armada Hoffler Properties

(Get Free Report)

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.

About Modiv Industrial

(Get Free Report)

Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation's supply chains.

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